Last week Barron's had this to say about ANF:
LIKE ITS MERCHANDISE, shares of Abercrombie & Fitch (ticker: ANF) aren't cheap.
Amid hopes that better days are ahead for the teen retailer -- famed for high prices and risqué ads featuring scantily clad models -- the stock price has doubled since the stock market began rebounding in early March despite crumbling sales and profits.
But Abercrombie faces a challenging environment. And its stock could unravel faster than a cheap sweater.
"The stock has gotten way ahead of itself, and we sold it ages ago," says Scott Black, founder and president of Delphi Management. "If you need to buy retail stocks, you can do a whole lot better."
Citigroup analyst Kimberly Greenberger, meanwhile, sees Abercrombie's stock price dropping to $24 a share, or 31% below today's close.
"A rebound will take time," says Reno Giancola, an analyst with Gluskin Sheff & Associates. "In fact, it will take longer than bulls expect, and before then, there will be an opportunity for a better entry point in this stock."
ANF reports earnings on November 13, and Goldman and Credit Suisse both goosed the stock this morning. ANF isn't spending $ on new stores, they've cut costs, and they have international growth in a forgiving market.
These lingerie ads are to models, as Nutri-System is to Marie Osmond.
But they both squeeze the stocks.
You gotta go with Goldman on this one.